FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : NEC SEMICONDUCTORS (IRELAND) LTD - AND - GROUP OF WORKERS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. Appeal of Rights Commissioner's Recommendation r-043090-043092-043088-043087-IR-06-DI.
BACKGROUND:
2. The Workers concerned who were employed as Team Leaders by the Company were successful in a competition and appointed to the role of Materials Line Controller in March 1999. The Company did not increase the Worker's pay as they claimed that the new position was at the same level as the posts already held.
The dispute was processed through to the 3rd stage of the grievance procedure in 2001 and the Workers concerned continued to do the job under protest.
Following the announcement by the Company that it was closing redundancy terms were agreed. As part of the closure agreement, concluded on the 12th April 2006, it was stated that"in respect of full and final settlement of all and any other claims arising from existing agreements the Company will make a lump sum additional payment of
€1,000 to each employee on completion of service."The Company contend that this agreement covers this claim and any others arising from existing agreements at the time.
The Union referred the dispute to a Rights Commissioner for investigation and recommendation, seeking the application of €25.00 on to the basic rate of pay. The Rights Commissioner found against the claimants.
The Union appealed the recommendation to the Labour Court on the 2nd January, 2007, in accordance with Section 13(9) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 27th March, 2007.
The Company, which is in the final stages of winding down, did not attend the hearing but sent in a letter in which they stated that they were willing to pay the Appellants the
€1,000 ex gratia amount provided they sign a discharge form. This offer will remain in place until the final liquidation of the Company.
UNION'S ARGUMENTS:
3. 1. The Union maintain that a review of the Team Leader role secured a proposal in principle from Management of a 5% increase in basic pay which was to be finalised on the day of the announcement to close the plant.
COMPANY'S ARGUMENTS:
4. 1.The Company is still willing to pay the ex gratia amounts as already calculated to the Material Line Controllers, the Statutory Redundancy amounts having already been paid, but only if each of them sign the Discharge form.
DECISION:
The Employer failed to attend the hearing for reasons which were explained to the Court in a written submission.
The Court has considered the submissions of the Union, the written submission of the Employer and has examined the conclusions and recommendation of the Rights Commissioner.
The Court notes, in particular, the Rights Commissioner's finding that an agreement was concluded between the parties which provided for the payment of an additional
€1,000 lump sum in"full and final settlement of all and any other claims arising from existing agreements". The Court accepts that the language used in the agreement must be given its plain and ordinary meaning and that, in the absence of any exception being specified, it covered all outstanding claims including those now before the Court.
Accordingly, the recommendation of the Rights Commissioner is affirmed and the appeal is disallowed.
Signed on behalf of the Labour Court
Kevin Duffy
29th March, 2007______________________
MG.Chairman
NOTE
Enquiries concerning this Decision should be addressed to Madelon Geoghegan, Court Secretary.